I'm not a market player but I feel like I need to invest.
HD has been a winner for 9 years straight and went from $248 3 weeks ago to $164 today.
In 2011 it was around $30.00
Not what stock, stocks. Never put all your money in one place and one sector.
Hardest hit stocks down 60-70% are resorts like wynn and mgm. These will recover, probably staring more toward late summer if things were to settle down. The only cruise line company I would want to put money in is Disney(dis). The company will come back because of it's multiple avenues of revenue. Some of the cruise lines could end up in big trouble depending on how long this lasts.
Catapiler(cat) and John Deere(de) will likely both drop more through earnings in April then stabilize. Once the economy gets over this they will both return to highs.
Airlines American (aal), Delta(dal), and United(ual). Are down between 50-70%. Like the cruise lines they are looking at around an 18 month cycle of recovery.
ExxonMobil (xom), and Philips (psx) will be good to own once the oil fiasco is over. Smaller companies could end up in bankruptcy.
Banks J PMorgan(jpm), Bank of America(bac), Citigroup(c) are taking big hits because of the lowering of interest rates and worry over their own investments and loans. Will likely drop more during earnings in April and then a steady slow rise as people begin to spend and investments recover.
Square(sq) the company that has the little white things that let you swipe credit cards for average people and small businesses is down 50%, as businesses recover so will they. There is also talk of a buyout from a larger company which makes this stock very appealing.
Any company that needs people to buy non essentials will be hurt for a little while. Compare Walmart (wmt) to HomeDepot (hd). Walmart is not taking an ugly hit because they sell essentials. HomeDepot doesn't for most people. If you work in an industry that is getting pinched by this groceries are going to win over home improvements or clothes.
These are all suggestions that could increase around 40-70% safely in the next 18 months if everyone quites freaking out.
Earnings for many of these companies will be in April and will likely have a negative impact due to the fact that they will have poor forecasts for the rest of 2020. If it was my money I would wait till after earnings to invest.
Disclaimer: I am not a licensed broker. I do this on a personal level for my family. If anyone chooses to do anything it is your choice. These are only suggestions.
Disclaimer 2: If we end up in a recession due to illogical fear then we will likely drop another 10-18% in the market. This scenario is possible. Do I want to see it no, but with the way the world is reacting it could happen.
Disclaimer 3: I'm female, and a farmer's wife. Therefore according to general society I'm an idiot.
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I think HD is heading for a downturn long term. Baby boomers have had an infatuation with bikes and bought them at a record pace. The younger generations are not as infatuated nor do they have the disposable income. As baby boomers age or their hires start to liquidate the toys, pricing on used will drop precipitously. If you were in the market for one at that time, would buy new or get a well cared for one at a really low price?
By HD I believe he means HomeDepot, Harley Davidson would be HOG on the stock market. They are non essential and will take a hit for a while.
